Bartleet Religare Securities says “This may provide temporary retail support for the index and may push the speculative counters higher”.
According to the Broker, the credit extension is ultimately one of the final bullets the regulator have to bring into infuse the market with capital.
However BRS says, if speculators and investors are unable to unwind positions and return to cash, it could spell trouble for the market.
The Stockbroker in its weekly client report points out that it is time for the brokers, regulators and investors to work together and look for other sources of capital for the market.
“Every broker wants to attract the larger funds that are currently pulling out of the market. It is equally important to tap the global independent trader community that is always after a good trade”.
This situation, it says will support and provide the much needed liquidity to the market.
Securities and Exchange Commission is expected to take a final decision on extending the broker credit limit by next week.
http://www.news360.lk/markets/stock-market/sri-lanka-stock-market-to-get-few-billion-rupees-next-week-if-the-credit-rule-is-relaxed-broker